Boeing (NYSE:BA) has had more than its share of troubles over the last two years with delays in the launch of its Dreamliner, labor problems, and disappointing earnings.
The clouds around the aircraft manufacturer lifted briefly as the Dreamliner made it maiden voyage. Analysts immediately pointed out that several airlines will have to check the plane to decide if it can be put into commercial service, which could delay delivery again.
Boeing was hit with another terrible blow against as Ryanair, Europe’s big budget airline, said it had ended negotiations to buy 200 Boeing planes.
The Ryanair order would have been one of the biggest in Boeing’s history. The airline was concerned that it would not get the absolutely best price from Boeing and made that clear as it walked away from talks. “Ryanair has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy, as this would not be a wise or sensible use of shareholder funds,” it said in a statement.
The news makes it more likely that the Boeing board will revisit the tenure of the company’s CEO James McNerney. There have been rumors over the last several months that the board would finally dismiss him because of the delays in the Dreamliner delivery schedule. Boeing’s shares were well over $100 two years ago. They trade at barely over $50 now.
The turnaround at Boeing, kicked off by the flight of the Dreamliner, lasted less than a week.
Douglas A. McIntyre
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